Shares of social trading and investing platform eToro (Nasdaq: ETOR) experienced a boost on Monday following the release of their third-quarter results, highlighting a 76% year-over-year surge in assets under administration, reaching $20.8 billion. The company also reported a 28% increase in net contribution, climbing to $215 million from $167 million in the corresponding period last year. This growth coincided with the implementation of a $150 million share repurchase program, signaling confidence in the company's future performance. Net income, calculated under Generally Accepted Accounting Principles (GAAP), rose by a substantial 48% to $57 million, compared to $39 million in the same quarter of the previous year. Furthermore, funded accounts expanded by 16%, reaching 3.73 million, partly attributed to the integration of Australia’s Spaceship app, acquired in 2024. The company's stock price jumped approximately 7% during Monday's intraday trading session on the Nasdaq. In October, eToro users executed 5 million cryptocurrency trades, marking an impressive 84% increase compared to the same period last year. The average invested amount per trade also saw a significant rise, increasing by 52% to $320. Interest-earning assets reached $8.7 billion, a substantial 55% increase year-over-year. The company announced that its crypto wallet, designed to provide users with access to prediction markets, tokenization capabilities, and lending products, is slated for release within the coming quarters. This move reinforces eToro's commitment to expanding its crypto offerings. Co-founder and CEO Yoni Assia emphasized the company's strategic focus on product development and innovation, specifically highlighting initiatives related to artificial intelligence (AI) and copy trading. The recent launch of Tori, an AI-powered analyst providing personalized investment insights, underscores this commitment.

eToro's Return to Crypto

In September 2024, eToro temporarily suspended trading for a majority of cryptocurrencies in the US following a settlement agreement with the Securities and Exchange Commission (SEC). The company agreed to a $1.5 million settlement to resolve allegations of operating an unregistered brokerage and clearing agency through its crypto platform. Since then, the regulatory landscape surrounding digital assets in the US has evolved, with signals of a more receptive stance from government officials. Former US President Donald Trump has publicly stated his intention to make the US a global hub for cryptocurrency and AI innovation. SEC Chair Paul Atkins also commented in September that “most crypto tokens are not securities.” In July, eToro announced its plans to tokenize 100 of the most widely held US-listed stocks and exchange-traded funds (ETFs) as ERC-20 tokens on the Ethereum blockchain, facilitating 24/7 on-chain trading. This announcement closely followed a similar move by trading and investing platform Robinhood, which unveiled a layer-2 network built on Arbitrum to tokenize US equities, granting European investors access to over 200 tokenized stocks and ETFs around the clock.

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